Global Online TV and Video Revenues Predicted to Nudge $22 Billion by 2016
LONDON - Global online TV and video revenues will grow more than five-fold to $21.52 billion in 2016 up from $3.48 billion recorded in 2010, according to new a new report from London-based analyst firm Digital TV Research.
Rapid growth in the availability of PC- and TV-based online television - both from local and international players - is driving the global expansion in the sector.
By 2016 the report predicts that 415 million homes in 40 countries will watch shows online up from 177 million in 2010.
The U.S. will remain the dominant territory for online TV and video revenues, with 54 percent of the global market in 2010 - but this will drop to around 36 percent of the total global market in 2016 as China and other territories become meaningful consumers of online video. Over the five-year period China’s online television and video revenues are predicted to surge from $50 million in 2010 to $1.38 billion in 2016.
“The OTT television and video sector is on the brink of a huge take-off," said report author Simon Murray, who said expansion was being driven by multiple factors including international expansion, increased demand and subscription services and emerging new content partnerships.